Chapter 19 - Adjustable Life Policy

Question 1

Adjustable Life (These are rare)

Answer 1

This policy permits the components to be adjusted to meet the changing needs of the policyholders. The insured picks the face value and the premium and the company computer figures out a term, whole or combination of both.

The premium can be increased or decreased, as with the death benefit time period and premium time period all can be changed. Essentially breaking all the rules.

If they change the death benefit, the insurer will likely require proof of insurability.